financing land???

[sniper7]

I have a very awesome piece of property I have an option at (12 acres in the mountains, surrounded by national forest)
I don't know much about financing land and was going to ask on here, also talk with my family to see if they would be interested in going in on it (would be a badass spot for a cabin and shooting etc)
anyways, anyone know about buying land/financing it?

probably about 60K for 12 acres, he said roughly 2K a year in property taxes (no buildings on it though....)


also, it was an old mining claim so does anyone know about "Zion 4". I have to look it up still. there are a few very very very nice cabins around the area so I wouldn't think too much about it, but just curious. also includes drill rights/well rights to drill a well.

[HBARleatherneck]

in my experience, it just requires more money down and or higher interest rate. i think when I bought this place 3 years ago, banks were wanting 9% on land without improvements(no house).

[sniper7]

roger that.

I am thinking about talking to my family as well and seeing if they would be interesting a putting money down as well since it could very easily be used yearly by all of us. great camping spot, potentially decent hunting, fishing close by, national forest to go ride/hike/shoot and overall pretty accessible.

also if anyone wants to throw out what my potential payments might be that would be great as well. maybe at a few different interest rates so i can see what I might be looking at.

[mx'r]

If I remember, I think it's 20-25% down on vacant land. You could always get a construction loan alot cheaper and build a one-room cabin or something cheap. This would also give you some equity. I think LimitedGM bought some land in the hills up north. Maybe he'll have a better idea on payments.

[Zundfolge]

One thing you might want to keep in mind if you're going to put a cabin on it is; do you have water rights?

Many folk have bought mountain property with the idea of putting a cabin on it and they find out they don't own the water rights to the property so you can't sink a well on it.

[cowboykjohnson]

If I remember, I think it's 20-25% down on vacant land. You could always get a construction loan alot cheaper and build a one-room cabin or something cheap. This would also give you some equity. I think LimitedGM bought some land in the hills up north. Maybe he'll have a better idea on payments.
This is what I found when I was looking for property. 20-25% down if they will even give you a loan. It seemed to be harder to get a loan on vacant land, but if it had a shanty you were golden.

[sniper7]

the current owner said it does have rights to drill a well so i assume that is the water rights. he said neighbors wells are around 100 feet and the local drill companies quoted him around 4-5k

[HBARleatherneck]

to drill a well down here on the flat it is $12000-15000. just so you know, his price seems a little low. but you can call. make sure you mention the fact that it is a mountain property, and probably drilling through granite.


when i say drill, i mean drill the hole, case it, and install pump.

also, I just got a well permit recently for another part of my land. so, i know that you can call Colorado department of water resources and they will tell you if in fact that land has a well permit on it, or is actually legal to drill a well. there are many people who have bought properties thinking they could get water and couldnt. i have lived up there and i also know people who ended up on a cistern. many people are on a cistern and haul in water. just be carefull and do your research.

[Irving]

Just drill for a well anyway.

[Mtn.man]

could be close on the drill price, but I don't think 100' will get it at least not if you want good water.
20% down about right.
Maybe talk the owner into lease purchase and find out all the particulars during that time period. I have bought alot of land and homes from lease purchase agreements.

[ChunkyMonkey]

20% down, 700 score, 6 mo reserves in the bank.. 6.5%
50% down, 700 score, 4.5%

Most of lot loans are 2 year -5 year balloon. Make sure you understand this. Give me a buzz if you have further question.

[cowboykjohnson]

Just drill for a well anyway.
Your not drilling a well, your drilling a really deep test hole.[Tooth]

[spleify]

I cant offer any help here, but good luck with the purchase sounds like an awesome spot!

[theGinsue]

i have lived up there and i also know people who ended up on a cistern. many people are on a cistern and haul in water. just be carefull and do your research.

For years my parents had to use a cistern on their property (the entire time I lived there they had to use the cistern) since they couldn't get "city water".

This period has some of the worst memories I have in my life.
Water rationing - especially in the winter when the water truck couldn't get out to our home, or couldn't make it up our drive.

Definitely take HBAR's advice and make sure through the gov office that you definitely can get a well permit.

[SSChameleon]

With vacant land you could try the bank. Right now that might be tough since you many not have a 'conforming loan'. If the bank says no or gives unreasonable terms there are a couple other options.

You can ask the seller to carry a note. Given the low interest rates on CDs and the stock markets volatility he may be down for it.

Ask an old relative with some cash in the bank. My neighbor has been borrowing money from his folks at 5%. They are happy because a CD or savings account pays 1-2.5% right now.

You can also try Prosper.com I've never used this website but it looks interesting and if your thermostat for risk is set higher than the average person it is worth looking at.

On a side note about the well and mining claim. Make sure the title company does their homework and you don't end up with a piece of land where Union Pacific owns the mineral rights and City of Aurora owns the water.

[mx'r]

5K sounds right on the well, pump, wiring. I'm at 9200 feet and my well is only 75' deep. Could'nt ask for better water. We hit water at 35' and punched deeper for a resivoir. Guess it just depends on where your located. I wish I could afford more property in the hills, I'd be all over it. Stuff is cheap right now. You wont regret this purchase. Go for it!

[rockhound]

20% down, 700 score, 6 mo reserves in the bank.. 6.5%
50% down, 700 score, 4.5%

Most of lot loans are 2 year -5 year balloon. Make sure you understand this. Give me a buzz if you have further question.


sounds about right, but shop around, bear in mind that you mill rate on your taxes is sometimes higher on vacant land also.

the water rights are generally not sold with any piece of property you buy. they are conveyed separately from the property and will have their own deed. some are "appurtenant to the land" these will be spelled out in your deed. if the plot has the rights to a well permit the water commissioners office will be able to tell you.

double check this before you buy.

I would recommend you talk to your real estate professional or to an attorney, don't do this on a hand shake.

shoot me the address and i can chase down some basic information on the parcel for you.

[sniper7]

sounds good I will get some more info on it. right now I am figuring out what kind of financing I would be looking at and if anyone in my family wants to put some money down and be involved in this.
I also need to think about it a bit more and see if this is the spot I really want to own some property at.

as for taxes, he said the 1st year he owned it, they were only $68 and now they are $2000....

[ChunkyMonkey]

J, go to netronline.com and go to the county the parcel is in. You can do your own research on value and taxes. Sometimes higher taxes translate into value - not always!